Commodity trader Glencore has struck aluminium offtake and alumina supply agreements with Malaysian-based aluminium company Press Metal Bintulu.
Claimed to be Southeast Asia’s largest integrated aluminium producer, Press Metal has a total aluminium smelting capacity of 1.08 million metric tonnes per year (mtpa) and aluminium extrusion capacity of 210,000mtpa.
Glencore alumina and aluminium Head Robin Scheiner said that the ten-year agreements mark a step ahead in Glencore’s strategy to increase the supply of green aluminium to the global market.
It also supports Press Metal’s expansion goals as a key primary producer of low-carbon aluminium.
Scheiner added: “Glencore is committed to supporting the transition to a low carbon economy. Demand for this metal segment has grown substantially over the last few years and is expected to increase in the future as customers look to reduce their carbon footprint.”
Press Metal CEO Tan Sri Dato’ Paul Koon said: “This agreement stamps the trust between both organisations as we share identical philosophies in supporting a low carbon economy and climate commitment towards net zero by 2050.
“We are delighted that Glencore recognises our efforts in sustainable and responsible production of low carbon aluminium. Press Metal endeavours to continuously produce low-carbon aluminium as our prime business strategy.”
In March 2022, Glencore signed contracts with French smelter Aluminium Dunkerque, whereby the commodity trader will supply feedstock alumina.
Aluminium Dunkerque also agreed to sell aluminium to Glencore.
Effective from next year, these contracts come amid disruptions to commodities exports such as alumina following Russia’s military offensive against Ukraine, which is a key producer, reported Reuters.